• Group revenue growth of more than 30% by FY27
• Gross margin expansion of over 200 basis points by FY27
• Owned brands to account for 8-10% of product revenue by FY27

FY25 has marked a year of significant change for Adore Beauty. Under the leadership of new CEO Sacha Laing, the company has refreshed its strategic growth plans to deliver a step change in revenue and margins over the next three years. For the first time, Adore Beauty has outlined measurable FY27 targets including Group revenue growth of more than 30%, gross margin expansion of over 200 basis points, owned brands accounting for 8-10% of product revenue, EBITDA margin above 8%, EBIT margin above 5%, and more than 1.25 million annual customers. The mid-term strategy will see Adore Beauty diversify its operating model to include a national retail network of more than 25 stores. The company has already opened five Adore Beauty branded stores and two iKOU stores since February. Operational initiatives under the new strategy and the integration of iKOU delivered record profitability and gross margins in FY25. Reported EBITDA of $8.1 million was more than 67% higher than the prior year and EBIT increased almost 75% over the same period to $4.0 million. Revenue increased 1.6% over the prior year to $198.8 million, reflecting a greater focus on improving quality of earnings with reduced promotional activity. The company's active customer base grew 2.6% over the prior year to 837,000 with improved marketing efficiency in the second half delivering more profitable new customer growth.

In FY26, the company is targeting a Group EBITDA margin of 5-6% and Group EBIT margins of 2.5-3.5%.

Over the year ahead, Adore Beauty expects strong revenue growth from higher-margin owned brands, retail media and retail stores, supported by upward momentum in its online business as the benefits of its strategic direction continue to enhance the core business.